Norway’s wealth fund sees high volatility in UK bonds

OSLO (Reuters) – Norway’s $1.15 trillion sovereign wealth fund remains invested in British bonds although the country’s gilts are likely to be relatively volatile going forward, the fund’s deputy CEO told Reuters on Friday.

“It’s a challenging time for the UK, so in many ways that hasn’t really changed,” deputy CEO Trond Grande said.

“I think we just should expect there could be a higher volatility in the UK gilts than in some of the other big markets.”

The British pound was the fund’s fourth biggest fixed income investment by the end of 2021.

(Reporting by Victoria Klesty, editing by Terje Solsvik)